The Federal Reserve Bank of Cleveland updated a stress index tool, allowing policymakers and financial analysts to monitor the condition of the markets.

The Cleveland Financial Stress Index now offers daily updates and tracks stress in real estate as well as securitization sectors.

The CFSI was developed by researchers that uses data from 16 components reflecting key financial sectors.

Previously published on a monthly basis, the index and its components are now updated daily, enhancing the ability to track market reactions to specific events.

In recent months, the CFSI's securitizaton market has been contributing most to the overall level of financial stress, according to Tim Bianco of the Cleveland Fed. 

In addition to being a useful tool for financial analysts and investment professionals, the CFSI also allows regulators to monitor stressful episodes as they are building.